Falck Renewables today signed the contract for the acquisition of the entire share capital of the company Vector Cuatro SLU, including its subsidiaries (“Vector Cuatro Group”). The Group, founded in 2007 by Borja Escalada, with headquarters in Madrid, is active in the services and management of plants for the production of renewable energy, also offering engineering and consultancy services for the development of projects for the generation of electricity from renewable.
The acquisition is part of the strategy underlying the Business Plan, communicated by the Falck Renewables Group which envisages, among other things, the development of the new Services Sector. The integration of the two companies characterized by distinctive capabilities in renewables will allow Falck Renewables to accelerate the growth of the Services Sector by immediately acquiring a managerial structure strongly oriented towards growth, a large portfolio of blue chip third-party customers in the renewables sector, characterized both by photovoltaic and wind production, and skills to improve the profitability of the Group's plants.
“The acquisition of the Vector Cuatro Group – commented Piero Manzoni, CEO of Falck Renewables SpA – represents a first important evolution in the Services sector, in full coherence with what is defined in our 2013-2017 Business Plan. Thanks to our experience in the management of proprietary assets, we intend to develop this market, through a highly innovative approach, necessary to compete in such a high-value segment, maintaining the usual profitability standards also thanks to the strong development prospects of the Vector Cuatro Group and the high potential existing contracts and customer portfolio. This acquisition also allows us to expand our territorial presence in countries where we are already active, especially in Europe, and lay the foundations for development in markets such as North America, Latin America and South East Asia, to mention only the main ones, following our natural international vocation. The complementarity of VectorCuatro's skills with the already existing skills of Falck Renewables will allow the Falck Renewables group to continue the industrial development of generation installations for itself and for third-party customers, with a view to making generation centers increasingly efficient and flexible through the development of innovative asset management technologies and services”.
The Vector Cuatro Group, a leading service provider in the global market, active in the entire value chain of renewable generation assets, provides its Asset Management, Engineering, Transaction & Legal Services services through a group of approximately 100 highly qualified and professional technicians with strong experience in the renewables sector, currently managing 934 MW of third party clients having participated in the management of more than 400 projects worldwide, representing more than 4.0 GW, and providing investment advice and financing for renewable sources of over USD 4 billion.
The Vector Cuatro Group is mainly present in Spain, Italy, France, Portugal, Bulgaria, Japan and Mexico and is already active in developing new markets such as, among others, the USA, Canada and South Africa. “The integration of Vector Cuatro Group within Falck Renawables Group – commented the CEO of Vector Cuatro Group, Mr. Borja Escalada – will strengthen Vector Cuatro Group's positioning within the global renewable energy industry in an increasing complex environment, leveraging from Falck's extensive technical capabilities and solid financial position to continue developing our Group in both existing and new geographies and enhancing our technical capabilities to diversify into new technologies”.
In 2013, the Vector Cuatro Group reported revenues of approximately 7,4 million euros and for 2014 revenues of approximately 9,0 million euros and an Ebitda of 1,8 million euros are expected. The consideration for the purchase of 100% of the share capital of the Vector Cuatro Group (Equity Value) will be paid in cash and will be determined on the basis of the net financial position as at 31 July 2014 and the change in net working capital on the same date compared to a level set target. The Enterprise Value of the Vector Cuatro Group has been established at 12 million euros as of July 31, 2014. The consideration will be paid in two tranches: 75% on the date of the transfer of the shares (Closing) and 25% on June 30, 2015.
The previous shareholders of the Vector Cuatro Group will remain engaged in the Vector Cuatro Group as key managers, managing the Vector Cuatro Group's own business which is expected to continue operating under the same brand, as well as continue to manage client relationships. Furthermore, the previous shareholders of the Vector Cuatro Group are expected to play an important role within Falck Renewables in defining, developing and delivering innovative services to the market. Vector Cuatro Group managers will participate in a Long Term Incentive Plan for the years 2015-2018. The operation will be entirely financed with own resources.
